Xpeng president says Chinese EV firm remains committed to Europe despite pressure from tariffs

Chinese electric vehicle maker Xpeng remains committed to Europe for the long term despite pressure it faces from the European Union's tariffs, according to a top company official.

"Our plan for Europe is a very long term one," Brian Gu, Xpeng's vice chairman and co-president, told CNBC's Charlotte Reed Monday at the Paris Motor Show.

Reflecting on the EU's decision to adopt higher tariffs on Chinese EV imports, Gu said that this has put "a lot of pressure" on its business model.

However, he added that the firm has a "long-term focus" in the continent and is aiming to "find every possible way to address and make ourselves competitive."

Gu said that Xpeng is currently reviewing multiple aspects of its business strategy — including product range, business model and pricing — as it evaluates the impact of EU tariffs.

He didn't confirm whether Xpeng plans to pass the costs of tariffs on to its customers.

"There's a number of areas we are looking at, examining, [and] trying to optimize," he said.

Longer term, Gu said that Xpeng plans to become "more local" in Europe, ramping up its manufacturing capabilities in the region.

"Having local manufacturing capabilities is something a company with a long-term plan and a long-term vision has to do, It's not because of tariffs, it's not because of short-term policy changes," Gu told CNBC.

Earlier this month the EU voted to adopt definitive tariffs on imports of China-made battery electric vehicles. The development was a major blow to the Chinese EV industry, which has been making significant inroads into Europe over the last several years.

The EU first announced it would slap higher tariffs on Chinese electric vehicle imports in June. At the time, the bloc said that China's firms benefit